County and City Budget Crises and Sales Tax Push; State Ballot Measures; Federal Housing Bill; County Fiscal Distress Declaration; Election Preview

County supervisors placed half-cent sales tax on November ballot and declared fiscal distress due to federal H.R. 1 cuts ($150M+ revenue loss). However, they rescinded a separate half-cent sales tax for roads from the ballot. Friends of SC Metro submitted 15,393 signatures for Reimagine Metro transit funding initiative (March 2028 ballot); Prop 43 threatens 2/3 approval threshold. County approved $1.29B FY26-27 budget closing $23M gap with one-time funds. State budget cuts threaten Medi-Cal/IHSS; Proposition 1 ($11.25B housing bond) on November ballot; Congress passed 21st Century ROAD to Housing Act. Record $67.75B assessment roll. Election preview: filing deadline passed; many local board races uncontested; competitive races in Capitola, Watsonville, Scotts Valley, PVUSD; tax proposals on ballot.